Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS) has split political parties and labour, with temporary fuel levy relief welcomed but dismissed as too little to fix unemployment, weak growth and a deepening cost-of-living crisis.
The EFF led the attack, describing the MTBPS as weak and disconnected from the reality of poor and working-class households.
The party welcomed the continuation of the Social Relief of Distress grant but demanded a permanent grant for unemployed graduates and young people, warning that fiscal discipline will not fix joblessness.
It slammed Treasury for cutting its growth forecast from 1.6% to 1.2% and rejected the proposed fiscal anchor legislation, arguing that legislating austerity and privatisation would tie the hands of future governments and entrench infrastructure decay.
COSATU was equally scathing, saying the statement missed a bold intervention on unemployment, poverty, inequality and collapsing public services.
While welcoming the R10 billion fuel levy relief and infrastructure commitments, the federation said it was “beyond depressing” that Treasury only expects the 3% growth needed to cut unemployment by 2034.
“The fact that the MTBPS forecasts only reaching the 3% economic growth needed to see unemployment fall in 2034 is beyond depressing,” COSATU said.
It also flagged the absence of funding for 10,000 labour inspectors promised by President Cyril Ramaphosa.
ActionSA said the fuel relief would not ease pressure on households battered by transport, food and electricity costs.
MP Alan Beesley said the measures ignored structural economic problems, though the party welcomed an extra R4.4 billion for SARS to close the tax gap and clamp down on non-compliance.
The DA struck a more positive note on fiscal discipline but warned stability alone will not create growth.
Finance spokesperson Kingsley Wakelin welcomed debt stabilisation at 78.4% of GDP, a growing primary surplus and commitment to a principle-based fiscal anchor, saying it must now be used as a platform for faster reforms in electricity, ports, rail, red tape and Broad-Based Black Economic Empowerment.
RISE Mzansi gave the MTBPS seven out of 10, praising the use of the R17.1 billion tax windfall for productive investment, but leader Songezo Zibi warned cuts to housing grants and lack of support for rail commuters and small businesses undermine the social wage.
The Afrika Mayibuye Movement acknowledged fuel relief and an extra R21.8 billion for local government equitable share to cover free basic services, but said the speech lacked concrete commitments on water shortages, unemployment and service collapse. It called for a fairer municipal funding model, funded deadlines for water infrastructure repairs and procurement that supports local manufacturing.
The Motor Industry Staff Association described the fuel levy cut as a victory for organised labour after months of pressure.
“Our members told us they were being forced to choose between getting to work and putting food on the table,” said MISA chief executive for operations Martlé Keyter.
MISA said the relief – R3 per litre off diesel and R1.50 off petrol from 4 November to 1 December, then R1.50 and R1 off respectively until 5 January – would provide R10 billion in support, but urged government to extend it if prices stay high and to table sustainable solutions at NEDLAC, including paraffin support for poor households.
